Threshold Lowered For Underpaid Taxes Penalty

Millions of Americans who owe uncle sam this year could receive a smaller tax bill from the IRS.

The Treasury Department announced Friday it is allowing more people who underpaid their taxes in 2018 to avoid paying a penalty.

It’s doing that by lowering its penalty threshold.

Taxpayers will now be able to avoid a penalty as long as they pay 80 percent of what they owe for 2018 through withholding.

The threshold is usually set at 90 percent.

This change comes amid concerns about the 2017 tax law.

The government accountability office estimates nearly 30 million taxpayers withheld too little on their taxes last year.

That’s millions more than typical.

For instance, a senior administration official said between 10 million and 12 million taxpayers withheld too little on their taxes in 2017.


Source: NewsNet | Threshold Lowered For Underpaid Taxes Penalty